•
5.2.3
Review management of operation and maintenance activities to ensure we are obtaining best value for resources used. Summary of future operation and maintenance expenditures
Future operation & maintenance expenditure covered in the LTFP are forecast to trend in line with the value of the asset stock as shown in Table 5.2.3. below. The forecast expenditures have been accommodated in the organisation’s long-term financial plan. Note that all costs are shown in current dollar values (i.e. real values). Table 5.2.3: Projected Operation and Maintenance Expenditure Y1: 2022/23
Y2: 2023/24
Y3: 2024/25
Y4: 2025/26
Y5: 2026/27
Y6: 2027/28
Y7: 2028/29
Y8: 2029/30
Y9 2030/31
Y10 2031/32
300,000
302,652
304,965
310,263
327,546
338,978
342,395
344,828
345,638
346,856
150,000
157,219
157,321
173,842
180,972
181,084
181,201
181,322
181,447
181,576
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
130,000
Transport
4,846,000
4,928,626
4,986,204
4,988,087
4,990,022
4,992,010
4,994,054
4,996,154
4,998,314
5,000,535
Water and Sewer
1,730,000
1,737,659
1,759,710
1,769,423
1,772,540
1,775,681
1,778,880
1,782,071
1,785,288
1,832,563
Asset Class Buildings and Other Structures Parks and Gardens Stormwater Drainage
The consequences of deferred maintenance, i.e. works that are identified for maintenance and unable to be funded are to be included in the risk assessment and analysis in the infrastructure risk management plan.
5.3
Renewal/Replacement Plan
Renewal and replacement expenditure is major work which does not increase the asset’s design capacity but restores, rehabilitates, replaces or renews an existing asset to its original or lesser required service potential. Work over and above restoring an asset to original service potential is upgrade/expansion or new works expenditure. 5.3.1
Renewal and Replacement Strategies
Council will plan capital renewal and replacement projects to meet level of service objectives and minimise infrastructure service risks by: • •
• •
• • •
Planning and scheduling renewal projects to deliver the defined level of service in the most efficient manner Undertaking project scoping for all capital renewal and replacement projects to identify o the service delivery ‘deficiency’, present risk and optimum time for renewal/replacement o the project objectives to rectify the deficiency o the range of options, estimated capital and life cycle costs for each options that could address the service deficiency o and evaluate the options against evaluation criteria adopted by Council, and o select the best option to be included in capital renewal programs, Using optimal renewal methods (cost of renewal is less than replacement) wherever possible Maintain a current infrastructure risk register for assets and service risks associated with providing services from infrastructure assets and report very high and high risks and residual risks after treatment to management, Audit, Risk and Improvement Committee and Council Review current and required skills base and implement workforce training and development to meet required construction and renewal needs Maintain a current hierarchy of critical assets and capital renewal treatments and timings required Review management of capital renewal and replacement activities to ensure we are obtaining best value for resources used.
Renewal ranking criteria
27
Asset Management Plan
